France, especially its capital city is starting to look up as investment hub in Europe.
In recent times, the region has suffered from attacks in the capital, Nice and other towns, which had a negative influence on the growth of investments. Tides are changing, though for the European superpower and investor confidence is getting back on track. An E&Y report published in early June showed that the French Capital city was a top pick for investors.
The city was ranked first with 37% of foreign direct investments. It beat London, which is quickly falling out of favour with international investors ahead of Brexit. The survey started in 2003, and it is the first time in 10 years that France has beaten the UK. President Macron’s election also contributed to the positive response from investors. Berlin and Frankfurt came in third and fourth respectively.
Return to Global Business
Various Global CEOs are looking to capitalise on the potential of France as it regains its position on the upper section of the international business pyramid. Walt Disney is one of the global companies that is injecting more money into France with an expansion of the Disneyland Theme Park in the French Capital. In late February 2018, Disney’s CEO Bob Iger was in France to meet with President Macron and announce the 2-billion euro investment that the company will be making. The theme park in France is one of its biggest tourism earners, and its expansion will see more features included to attract more visitors. The real estate sector is one area where business has been going well in France. When Macron came to power, he brought with him an enthusiasm that made investors believe again in the power that France holds. In the first half of 2017, property value was up 6.6% in the capital.
Reasons to Invest
Aspiring investors will want to know what they are getting into before they can put their money in any area of business in France. For one, the region has lower costs of setting up a business compared to other countries in Europe that offer the same opportunities. London’s West End is more expensive when it comes to renting office space than the French Capital. Investors who want to establish companies in G20 nations have to plan for average set up expenses of about 9% of the per capita income while in France, it is a little more than 1%.
Infrastructure is another aspect that is attracting leaders from all over the world to include France in their list of business partners. The Roissy-Charles-de-Gaulle Airport is the second busiest in passengers and cargo. Its road network rivals every country’s in Europe, and its railway network is the second fastest. The efficiency and speed of its infrastructure make France the top European beneficiary of direct investment in the logistics sector.
The improved image of Paris has also returned its appeal as a desirable destination for world forums. These events bring together global CEOs and young entrepreneurs who raise the reputation of the region even further. Viva Technology is one such forum that sees leaders in the tech startups meet. The Global Water Summit and Paris Climate are other events hosted in the French Capital. In 2019, the G7 will be meeting in France as well.
France may have had a rough go in the past several years, but investors are back to giving the region the attention it commands. With a strong standing in the EU and the right opportunities to offer investors, Paris and other French regions are becoming favourites among entrepreneurs and world leaders in different sectors from tech to financial services to tourism, and that is why it is the ideal business partner for any country.